A laptop computer that is purchased by an accounting firm is considered to be:
A) consumption spending.
B) investment spending.
C) private saving.
D) a pretax dividend.

Question

Quizplus · Accepted Answer

The purchase of a laptop by an accounting firm is considered investment spending as it is being used to generate revenue and increase productivity. Consumption spending refers to purchases made for personal use, private saving is money saved by individuals or households, and a pretax dividend is a distribution of a company's earnings to shareholders.

A Laptop Computer That Is Purchased by an Accounting Firm